Mexican tomatoes count nearly $5 billion in economic impact in the U.S., according to new research from the University of Arizona.
Presented at Tomato Week 2021 by the Fresh Produce Association of the Americas, the 32-age research report, called Mexican Fresh Tomatoes: Agribusiness Value Chain Contributions to the U.S. Economy, was written by Dari Duval, Ashley Kerna Bickel and George Frisvold at the University of Arizona.
“The direct contribution of Mexico-produced tomatoes imported by the United States and Canada to the U.S. economy is $2 billion in sales and when considering multiplier effects supported by that activity, the total annual sales contribution is approximately $4.8 billion (in 2016),” the authors said.
What’s more, the research said the “backward and forward-linked economic activity” in the U.S. tied to imported Mexican tomatoes directly supported an estimated $1.4 billion in gross domestic product in 2016, and including multiplier effects, the total estimated contribution to GDP in 2016 was $2.9 billion.
Also supported, the study said, were a total of 32,800 full- and part-time jobs, including multiplier effects, earning $1.4 billion in employee compensation and $353 million in business owner income.
Another presentation during the FPAA’s Tomato Week was from Daniel Scheitrum, of the University of Arizona, on the recently published Impact of COVID-19 on U.S. Fresh Tomato Markets.
Scheitrum, according to a news release, focused on the one-year mark since the COVID-19 pandemic began and highlighted how the fresh tomato industry was impacted by the lockdowns and market changes that occurred throughout 2020.
“One of the key findings of the COVID study is that food service tomato sales, especially round mature green tomatoes, have not recovered their market share, due to consumer preference for vine-ripened round tomatoes at retail. COVID has changed many patterns, including where tomatoes are consumed, and by extension which kinds of growers are able to prosper,” FPAA president Lance Jungmeyer said in the release. “This has lasting and positive connotations for vine-ripened tomatoes produced in protected environments.”
